Date: January 22, 2025
To: Rep. David Casteel, Chair, and members of the Commerce Committee
From: Misha Smith, Affordable Housing Policy Manager, Empower Missouri
Re: Our opposition to HB 595 and HB 343
Founded in 1901, Empower Missouri is the largest anti-poverty advocacy organization in the state. As part of our work, we convene a statewide Affordable Housing Coalition every month. This coalition is made up of individuals and organizations who are working to ensure every Missourian has access to safe, affordable, stable housing. On behalf of our staff, board, and coalition members, we are asking you to vote no on HB 595 and HB 343.
If these bills are passed, our primary concern is that the lack of access to affordable housing will increase due to the discrimination low-income renters experience, especially when utilizing Housing Choice Vouchers (HCV). While HCVs and other federal rental assistance programs have been shown to be effective at reducing homelessness among households with low incomes, the elderly, and people with disabilities, discrimination against these tenants continues to be high. A 2018 study found that, in some cities, more than 70% of landlords were refusing to rent to people with vouchers. Source of Income (SOI) discrimination bans are a key tool for local governments to prevent homelessness and ensure that those with the least among us can put a roof over their heads. The state should not be preventing local governments from enacting these provisions.
Families who receive a Housing Choice Voucher have already faced substantial odds to even make it into the program. Due to chronic underfunding by HUD, only 1 in 4 individuals who qualify for a HCV are able to access one each year. Seventy-five percent of families receiving these vouchers earn less than 30% of the Area Median Income (AMI), with the remaining voucher recipients earning less than 50% of the AMI. Once they receive a voucher, they only have 30-60 days to locate a landlord who is willing to rent to them. And, the single largest age group who benefits from this program are children. Nearly 40% of those benefiting from HCVs are under 18. Families with at least one child under eighteen continue to face more barriers to housing, and in 2024, Missouri saw a 52% increase in unsheltered homelessness among this population.
Support for Landlords
Landlords have expressed concern about loss of short-term income as they wait for inspections to be completed or repairs to their units due to damages. Kansas City’s SOI Discrimination Ban, City Ordinance No. 231019, established a $1M Landlord Risk Mitigation Fund Pilot Program to cover these costs, if they were to incur. We also believe that this language is important to ensure that properties are able to be rented quickly and payment issued promptly. HUD has also updated their Housing Quality Standards (HQS) or inspection process to be more streamlined and no longer required on an annual basis, but biennially. In addition, they have updated their recommendations to include pre-inspection of units and digitization of forms, which allow for real time updates.
Access to affordable housing strengthens Missouri’s economy.
Year over year, the HCV program has helped to strengthen Missouri’s economy. In CY2024, Missouri received $32 million dollars in funding for the HCV programs, most of which goes into the pockets of landlords who are willing to rent to voucher holders. Nationally, more than 800,000 of HCV holders are seniors, and 1.3 million are people living with disabilities who are able to live independently.
Studies have shown that vouchers lift people out of poverty, increase mental and physical health outcomes, and decrease homelessness. This saves communities substantial funding across policing, healthcare, and other costs associated with managing homelessness. Vouchers are a proven intervention to increasing access to affordable housing in communities. We ask that you vote no on source of income discrimination and support equitable access to housing for all Missouri residents.
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